Customs union warns of job losses under ‘Optimization Law’

THE Bureau of Customs Employees Association (BOCEA) warns of potential massive job losses in the agency as the government proceeds with the implementation of RA 12231 (‘Rightsizing Law’) otherwise known as the ‘Government Optimization Act of 2025.’

‘Rightsizing’ the bureaucracy is among the priorities of President Marcos Jr. when he took office in 2022, and Congress complied with the passing of RA 12231 last August 4, 2025.

The law aims to modernize and enhance the delivery of public services by granting the President the authority to reorganize the Executive Branch which include merging, consolidating or abolishing government agencies deemed redundant or misaligned.

The law also makes it difficult for government contractual workers known as ‘JOs’ (Job Orders) and ‘COS’ (Contract Of Services) to acquire security of tenure by requiring them a minimum of 10 years of continued service in an agency before qualifying them to permanent job status but subject to a cap or quota set by a committee under the Office of the President.

The Pre-requisites to Optimization under the law are: 1) Conduct an organizational review and study (ORS) and 2) Formulate an Optimization Plan (OP) within the prescribed period.

The union noted that all agencies under the Executive Branch were expected to complete their ORS by May 1, 2026, and to submit their respective OPs by August 29 this year.

A ‘Committee on Optimizing the Executive Branch’ (COEB) under the Office of the President would do the ORS/OP for non-compliant agencies.

An agency, such as the BOC, may include in the Optimization Plan the shift/modification of its function and organizational and staffing actions such as creation, transfer, abolitions, deactivation, merging or consolidation, splitting, conversion, regularization, reclassification or retitling of positions.

In a statement sent to Pinoy Exposé, the union claimed that at the Port of Manila (POM) alone, nearly half—547 positions—would remain from the 1,037 filled up position once the optimization plan for the agency gets implemented.

“Obviously, the Optimization Plan will definitely lead to termination of positions and laying off of workers, or forced retirement of workers,” the statement claimed.

BOCEA assured it would continue to uphold serving the interest of rank-and-file employees and in safeguarding their right to security of tenure.